After a special meeting, BoE announces to cut Bank rate by -15bps to 0.10%. Also, Asset purchase target is raised by GBP 200B to GBP 645B. BoE will also enlarge the TFSME schedule financed by the issuance of central bank reserves.
BoE said in the statement: “Over recent days, and in common with a number of other advanced economy bond markets, conditions in the UK gilt market have deteriorated as investors have sought shorter-dated instruments that are closer substitutes for highly liquid central bank reserves. As a consequence, UK and global financial conditions have tightened.”
